Risk Governance Practices
Developing risk governance practices including Board and Board Sub Committee roles responsibilities, mandates, work-plans and timetables.
Risk Appetite Statements
Developing risk appetite statements, limits and targets along with the associated monitoring and reporting programs.
Policies
Writing and developing policies, standard operating procedures and process documentation.
Business Financial Modeling
Building business and financial models for bank applications as well as business case development for assessing the profitability of new lines of business.
Model Governance
Model governance programs ensuring compliance with the OCC 2011 -12 Sound Practices for Model Risk Management and OSFI model governance expectations. This includes developing policies, establishing vetting and validation teams and development of model inventories.
Compliance
Establishing and rolling-out regulatory compliance management programs (RCM) including the establishment of risk based approaches to compliance management requirements and testing applications.
Anti Money Laundering
AML, ATF, PEP and fraud management programs to mitigate the risk of exposure to fraud, money laundering and politically exposed persons.
• Risk assessments of customers, products and channels,
• Development of monitoring programs including the development of automated rules,
• Establishment of Enhance Due Diligence processes.
Stress Testing
Development of stress testing and scenario analysis programs ensuring compliance with E-18 Guidelines.
Operational Risk Frameworks
Establishing operational risk management frameworks that include:
• Establishing an operational risk taxonomy,
• Developing an operational risk appetite statement (RAS),
• Developing operational risk management tools that ensure compliance with OSFI E-21 guidelines,
• Developing and rolling-out risk and control self assessment (RCSA) programs enterprise-wide.
Capital and Internal Capital Adequacy Assessment Process (ICAAP) documentation
Drafting capital policies and the associated ICAAP documents including the development of appropriate stress tests for the determination of economic capital required to support the risk profile of the organization.
IFRS-9 Compliance
Determination of appropriate allowance methodologies that are in compliance with the IFRS-9 legislation. This includes identifying the appropriate level of complexity of model design to support the determination of both normal expected credit loss (12 month) as well as when there has been significant deterioration of the credit quality of the asset (over the remaining term).
Development of Residential Mortgage Underwriting Policies
Drafting retail policies and procedures that are in compliance with the OSFI B-20 guidelines. This includes establishing an efficient definition of non-compliance based on the customer base and lending practices as well as the ongoing monitoring of non-compliance portfolios.
Living Wills and Resolution Plans
Drafting organizations living wills and resolution plans that will meet the expectations of the regulators. This involves identifying the various scenarios that could lead to a crisis and how that crisis would be managed to an ultimate sale or windup of the organization. Appropriateness of contingency funding plans are often included in the analysis.
Internal Control Reviews:
A complete review of the internal control framework for a particular line of business leading to the optimization of the quality assurance testing program. In one organization this involved bringing Internal Audit, Operational Risk and SOX teams to the table to agree on the key risks and controls for the particular function in order to consolidate their testing to include only those controls that were considered key. Quality assurance testing of the key control was performed on by a single QA team. Significant costs savings as well as the and minimization of business disruption due to QA testing was achieved by the project.
Assisting FINTECs and new Startup Companies
PWR Consulting can help assess the risks inherent in the products offered by the FINTEC or the processes established to support the startup’s business. This is crucial when considering entering into a relationship with a financial institution. Financial institutions will often expect that your company has in place the necessary controls to mitigate operational and reputational risk to the institution. We can help build the appropriate risk management program that includes policies and procedures and provide risk management advisory services and support when entering into contracts with prospective customers.